ED set to begin probe into Formula-E race payment

Hyderabad, Dec 20 (IANS) The Enforcement Directorate (ED) appears set to begin an investigation into the Formula-E race case against Bharat Rashtra Samithi (BRS) Working President and former Telangana minister K. T. Rama Rao.

The ED on Friday wrote to the Anti-Corruption Bureau (ACB), seeking a copy of the First Information Report (FIR) and other documents related to the case.

The central agency is likely to register the case under the Prevention of Money Laundering Act (PMLA) against K.T. Rama Rao and others, after receiving FIR and other details.

Sources said the ED will register an Enforcement Case Information Report (ECIR) under the PMLA.

The ACB Thursday registered a case against KTR and two others alleged financial irregularities linked to the Formula-E race held in Hyderabad in February 2023.

The case relates to the alleged unauthorised transfer of Rs 55 crore from the Hyderabad Metropolitan Development Authority (HMDA) to Formula E Operations (FEO) without proper approvals.

The FIR was registered under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the Indian Penal Code.

It is alleged that on the direction of then Industry Minister Rama Rao, the HMDA paid Rs 55 crore to a foreign company in violation of RBI guidelines. The payments were reportedly made without obtaining approvals from the Cabinet or the Finance Department.

The ACB named KTR, as Rao is popularly known, as accused number one in the FIR. IAS officer and then HMDA Commissioner Arvind Kumar and former HMDA Chief Engineer B.L.N. Reddy have been named as accused number two and three respectively.

The ACB registered the FIR a few days after Governor Jishnu Dev Varma gave permission to try KTR on a request made by the state government.

The BRS leader has denied the allegations of corruption. He asked the Congress government to explain where the corruption was when the organisers confirmed that they received Rs 55 crore from the HMDA.

KTR has filed a petition in the Telangana High Court, seeking orders to quash the FIR registered by the ACB.